Intesa Sanpaolo: Consolidated Results Q1 2021
Turin - Milan, 5 May 2021 – At its meeting today, the Board of Directors of Intesa Sanpaolo approved the consolidated interim statement as at 31 March 2021 (°) (7) . Results for the first quarter 2021 confirm Intesa Sanpaolo’s ability to effectively face the challenging aftermath of the COVID-19 epidemic and are fully in line with the target of delivering a full-year net income well above €3.5bn. Results reflect Intesa Sanpaolo’s sustainable profitability deriving from a solid capital base and liquidity position, a resilient and well-diversified business model, the strategic flexibility in managing operating costs and the asset quality, with a low risk profile bolstering the support provided to Italy by the Group, which is also committed to becoming a reference model in terms of sustainability and social and cultural responsibility. Value generation for all stakeholders will be accreted by synergies estimated at over €1bn deriving from the merger of UBI Banca, successfully completed with no social costs, and by more than €6bn out of pre-tax profit devoted by the Group in 2020 to further strengthening the sustainability of results.
In the first quarter of 2021, the Group recorded:
● net income at €1,516m
● growth in gross income, up 22.2% on Q1 2020;
● growth in net fee and commission income, up 8.9% on Q1 2020;
● reduction in operating costs, down 2.6% on Q1 2020;
● high efficiency, with a cost/income of 46.5% in Q1 2021 – a level that puts Intesa Sanpaolo among the best in the top tier European banks;
The capital position was solid and well above regulatory requirements: Pro-forma fully loaded Common Equity Tier 1 ratio was 15.7% deducting dividends accrued in q1 2021 from capital.
Credit quality improved. Gross NPLs were reduced by 0.8% on year-end 2020 and by around €32 billion since the end of 2017 exceeding by around €6 billion the €26 billion deleveraging target set for the entire four-year period of the 2018-2021 Business plan. NPL ratio was 4.4% gross and 2.3% net. Annualised cost of risk in q1 2021 decreased to 35 basis points.
Statement by Carlo Messina, CEO of Intesa Sanpaolo: https://group.intesasanpaolo.com/en/newsroom/news/all-news/2021/1q21-results-ceo-statement
Press release - First quarter 2021 results: